Real Estate – Target Tier-2 and 3 cities

Real estate India -In 2024, 44% of the 3,294 acres of land bought by real estate developers was in India’s growing Tier-2 and Tier-3 cities. A report by CREDAI-at the New India Summit 2025 in Nashik, revealed that housing sales in 2024 reached 681,138 units across 60 cities, increasing by 23% compared to the previous year. The market value of these sales was ₹7.5 trillion, which is a 43% jump, driven by high demand.

The report, titled Overview of Residential Real Estate Market in 60 Major Cities of India, highlighted that luxury and ultra-luxury housing accounted for 71% of the total sales value in 2024, thanks to larger property prices and strong demand in premium markets. Sales of properties priced ₹1–2 crore grew by 52%, with 1,32,532 units sold, while properties over ₹2 crore saw a sharp 73% increase in sales. Tier-2 and Tier-3 cities are now becoming academic, logistics, and industrial hubs, leading to higher housing demand for mid-range and affordable homes.

In major cities:

• Mumbai’s House Price Index (HPI) grew from -2.5% (2019-2021) to 3.4% (2022-2024), showing renewed demand and economic confidence.
• Bengaluru’s HPI rose to 7.1% in 2024 from 3.9% in 2022, driven by job creation and infrastructure growth.
• Gurugram’s HPI in 2024 was 7.3%, slightly down from 7.6% in 2022.
• Noida’s HPI climbed to 13% in 2024 from 12.9% in 2022.

In Tier-2 and Tier-3 cities:

• Ahmedabad’s HPI improved to 6.5% in 2024 from 3.8% in 2022.
• Nashik’s HPI dropped to 2.9% in 2024 from 3.8% in 2022.
• Nagpur’s HPI grew to 3.5% in 2024 from 2.1% in 2022.
• Jaipur’s HPI fell slightly to 7.2% in 2024 from 7.7% in 2022.
• Lucknow’s HPI rose to 8.4% in 2024 from 5.8% in 2022.

Urbanization and government projects like the Prime Minister’s Gati Shakti mission are enhancing connectivity between smaller towns and big cities, creating new growth opportunities in the housing market.

#real estate India